Walgreens to sell Valeant branded products at reduced costs

Valeant Pharmaceuticals recently entered into new distribution and pricing agreements with Walgreens that are intended to expand access to and lower the costs of its branded drugs.

Under the 20-year deal, which will be set in motion early next year, individuals will be able to purchase Valeant's prescription-based and over-the-counter skin and eye products at reduced prices from more than 8,000 Walgreens locations. 

The drug retail chain will also sell generic versions of more than 30 other Valeant products that include the therapeutic areas of gastroenterology and neurology. 

"Walgreens is always looking for ways to expand the products and services people want and need, and our agreement with Valeant advances our commitment to creating a patient-led pharmacy experience," Walgreens President Alex Gourlay said. "In addition to promoting pharmacist-patient interactions to improve care and medication adherence, this agreement creates a new direct distribution model that we believe will help increase efficiency."

Both agreements combined are expected to save the health care system up to $600 million a year as Valeant's skin and eye products would be available for 10 percent less than their wholesale list prices and the generics would be available for less than 50 percent on average.

The reduced pricing of the skin and eye products will go into effect over the next six to nine months, while the generic prices will start being offered during the middle of next year. The generic pricing will be available to all individuals regardless of their health insurance; however, the deal doesn't apply to those who have government-based insurance.

Valeant plans to make distribution and pricing deals with other independent retail pharmacies in the future.

"We have listened to what the marketplace is saying and we've taken positive steps to respond," Valeant Chairman and CEO J. Michael Pearson said. "Our goal is to create a system that allows prescription medications to be dispensed and insurance claims adjudicated in an efficient manner while allowing physicians to focus their efforts on what matters most: patient care."